The U.S. Securities and Exchange Commission (SEC) has introduced a plan that requires companies to release detailed information about their greenhouse gas emissions. For the first time, companies will have to file a document with the SEC outlining the risks to their operations from global warming. It is about annual reports or records.
Larger companies should provide insights into their own emissions, but should also provide insights into the emissions of companies within their distribution chain.
The plan will be discussed at the Stock Exchange Monitoring Committee on Monday. This is expected to be a major confrontation with industry lobby groups and Republican politicians. They believe that such rules do not belong to the SEC. The watchdog, like left-wing MPs and environmental groups, believes small investors need that information to make informed decisions.
“For generations, the SEC has intervened when there was a strong need to disclose information related to investor decisions,” SEC President Gary Zensler said in a statement.
Auditors and other experts should check the weather information.
Some companies, such as the oil company ExxonMobil, are already releasing information about their emissions.